New debt recovery powers agreed by Parliament in the Public Authorities (Fraud, Error and Recovery) Act are designed to increase fairness and to more effectively and efficiently be able to recover debt from individuals who are not in receipt of benefit or suitable PAYE employment.
These powers will encourage voluntary repayment of debt owed to DWP from those no longer in receipt of benefit or in suitable PAYE employment, as well as ensuring that there is recourse for those who have the means to repay but do not.
In the most serious cases, and where the outstanding debt balance is at least £1000, the Debt Recovery Measure allows DWP to apply to the Magistrates court for consideration of a Disqualification from Driving Order. These powers will be used as a last resort where all other attempts to secure repayment, including recovery directly from a bank account have not been possible. A court cannot grant a disqualification order where the individual has an essential need to drive, and initially any disqualification will be suspended providing the individual maintains the repayment terms set by the court. As part of the passage of the Public Authorities (Fraud, Error and Recovery) Act, detailed Impact Assessments were published and are available online here: Impact assessment published online. The Impact Assessment contains our estimate of the scale of our debtors and debt stock as well as the cost of implementing the measures along with potential savings.
We expect to publish data relating to these measures through our usual routeways for example our Annual Report and Accounts
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